@CapitalFMNews

Companies to contribute up to Sh5,000 per employee towards new housing fund: Rotich

5 days ago, 18:41

By: Margaret Njugunah

, NAIROBI, Kenya, Jun 14 – Treasury has proposed the amendment of the employment act to compel employers contribute a maximum Sh5,000 to the National Social Housing Development fund of every employee, while employees will contribute 0.5 percent of their gross salary.

National Treasury Cabinet Secretary Henry Rotich says the government will establish the fund and strengthen the national housing corporation to more strategic roles.

Rotich, who was presenting the budget statement to parliament, allocated Sh3 billion for construction of affordable and social housing units by the Government.

The CS says the newly constituted Kenya Mortgage Re-Finance Company has been established with a view of extending long term loans to financial institutions secured against mortgages which will be jointly owned by the government, the private sector and select development partners.

“Every Kenyan has a right to decent shelter. To meet this requirement, we plan to increase the supply of affordable houses by partnering with the private sector to develop homes in serviced land. This will require reforms in property registrations, access to affordable financing and adoption of new low-cost building technologies, which we are prepared to undertake under “The Big Four” Plan,” Rotich told parliament.

Additionally, the government has reduced corporate tax rate in the housing sector to 15 percent for developers who construct at least 100 units per year.

Additionally, Sh1.5 billion has been allocated towards the construction of housing units for police and Kenya prison officers.

“We have also provided Sh1.5 billion for the Civil Servant Housing Scheme Fund to support the offtake of the housing units.”

The government has also promised to provide infrastructure and utilities to urban land owned by both National and County Governments and invite the private sector to develop affordable housing units.

To this end, the government will restructure the Kenya Urban Support Programme, Kisumu Urban Project and Nairobi Metropolitan Services Improvement Project, to provide Sh18.4 billion to support the servicing of land in various towns in the country to bring in private developers into the affordable housing programme.

Housing is one of the biggest winners in this year’s budget allocations alongside manufacturing, universal health care and food security.

He says government resources have been structured to support the four priority areas with projection of at least 7 percent GDP growth over the medium term creating job creation and reducing poverty.


Read More


Category: business

Suggested

2 hours ago, 11:35
@StandardMedia - By: Cyrus Ombati
More than half of alcohol consumed in Kenya is illicit, says alliance

Up to 60 per cent of alcohol in Kenya is illicit and dangerous, more than double previous estimates by the World Health Organisation. ...

Category: business news
1 hour ago
@BusinessDaily - By: The Citizen
TZ seizes fish at MPs' canteen, minister apologises

A ministry official had on Monday used a ruler to measure the length of processed tilapia on a plate before impounding the two kilos of fish ...

Category: business lifestyle news
4 hours ago, 10:20
@CapitalFMNews - By: Wambui Waweru
Hackers steal $30m from top Seoul bitcoin exchange

SEOUL, South Korea, Jun 20 - Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's pric Kenya breaking news | Kenya news today | ...

Category: business finance
7 hours ago, 06:49
@BusinessDaily - By: Abiud Ochieng
Kenya lawyer rules out analysing Anglo Leasing data

The lawyer, through mutual legal assistance, got documents from the Swiss government ...

Category: business news opinion economy
2 hours ago, 12:14
@CapitalFMNews - By: Kennedy Kangethe
Jubilee Insurance taps into microinsurance with premiums low as Sh20

NAIROBI, Kenya, Jun 20 - Jubilee Insurance on Wednesday launched microinsurance product targeting low-income earners in partnership with Bluewave Microfina Kenya breaking news | Kenya news today | ...

Category: business
2 hours ago, 11:53
@CapitalFMNews - By: Kennedy Kangethe
CAK, Procurement Authority sign pact to promote fair procurement in Kenya

NAIROBI, Kenya, Jun 20 - The Competition Authority of Kenya (CAK) and the Public Procurement Regulatory Authority (PPRA) have on Wednesday signed a Memoran Kenya breaking news | Kenya news today | ...

Category: business

@CapitalFMNews

Companies to contribute up to Sh5,000 per employee towards new housing fund: Rotich

5 days ago, 18:41

By: Margaret Njugunah

, NAIROBI, Kenya, Jun 14 – Treasury has proposed the amendment of the employment act to compel employers contribute a maximum Sh5,000 to the National Social Housing Development fund of every employee, while employees will contribute 0.5 percent of their gross salary.

National Treasury Cabinet Secretary Henry Rotich says the government will establish the fund and strengthen the national housing corporation to more strategic roles.

Rotich, who was presenting the budget statement to parliament, allocated Sh3 billion for construction of affordable and social housing units by the Government.

The CS says the newly constituted Kenya Mortgage Re-Finance Company has been established with a view of extending long term loans to financial institutions secured against mortgages which will be jointly owned by the government, the private sector and select development partners.

“Every Kenyan has a right to decent shelter. To meet this requirement, we plan to increase the supply of affordable houses by partnering with the private sector to develop homes in serviced land. This will require reforms in property registrations, access to affordable financing and adoption of new low-cost building technologies, which we are prepared to undertake under “The Big Four” Plan,” Rotich told parliament.

Additionally, the government has reduced corporate tax rate in the housing sector to 15 percent for developers who construct at least 100 units per year.

Additionally, Sh1.5 billion has been allocated towards the construction of housing units for police and Kenya prison officers.

“We have also provided Sh1.5 billion for the Civil Servant Housing Scheme Fund to support the offtake of the housing units.”

The government has also promised to provide infrastructure and utilities to urban land owned by both National and County Governments and invite the private sector to develop affordable housing units.

To this end, the government will restructure the Kenya Urban Support Programme, Kisumu Urban Project and Nairobi Metropolitan Services Improvement Project, to provide Sh18.4 billion to support the servicing of land in various towns in the country to bring in private developers into the affordable housing programme.

Housing is one of the biggest winners in this year’s budget allocations alongside manufacturing, universal health care and food security.

He says government resources have been structured to support the four priority areas with projection of at least 7 percent GDP growth over the medium term creating job creation and reducing poverty.


Read More

Category: business

Suggested

2 hours ago, 11:35
@StandardMedia - By: Cyrus Ombati
More than half of alcohol consumed in Kenya is illicit, says alliance

Up to 60 per cent of alcohol in Kenya is illicit and dangerous, more than double previous estimates by the World Health Organisation. ...

Category: business news
1 hour ago
@BusinessDaily - By: The Citizen
TZ seizes fish at MPs' canteen, minister apologises

A ministry official had on Monday used a ruler to measure the length of processed tilapia on a plate before impounding the two kilos of fish ...

Category: business lifestyle news
4 hours ago, 10:20
@CapitalFMNews - By: Wambui Waweru
Hackers steal $30m from top Seoul bitcoin exchange

SEOUL, South Korea, Jun 20 - Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's pric Kenya breaking news | Kenya news today | ...

Category: business finance
7 hours ago, 06:49
@BusinessDaily - By: Abiud Ochieng
Kenya lawyer rules out analysing Anglo Leasing data

The lawyer, through mutual legal assistance, got documents from the Swiss government ...

Category: business news opinion economy
2 hours ago, 12:14
@CapitalFMNews - By: Kennedy Kangethe
Jubilee Insurance taps into microinsurance with premiums low as Sh20

NAIROBI, Kenya, Jun 20 - Jubilee Insurance on Wednesday launched microinsurance product targeting low-income earners in partnership with Bluewave Microfina Kenya breaking news | Kenya news today | ...

Category: business
2 hours ago, 11:53
@CapitalFMNews - By: Kennedy Kangethe
CAK, Procurement Authority sign pact to promote fair procurement in Kenya

NAIROBI, Kenya, Jun 20 - The Competition Authority of Kenya (CAK) and the Public Procurement Regulatory Authority (PPRA) have on Wednesday signed a Memoran Kenya breaking news | Kenya news today | ...

Category: business
Our App